Completion Time Frame: 1 day
Completion Costs: HNL 550 (full certificate and non-encumbrance certificate)
Points to Note:
The buyer can verify the property background at the on-line Unified Registry System (SURE): www.ip.hn.

Step 2: Verification that the municipal taxes have been paid

Completion Time Frame: 2 days
Completion Costs: No cost
Points to Note:
The municipal tax number of the property is needed to check who is the registered owner of the land in the cadastre.

Step 3: The notary issues the deed (preliminary)

Completion Time Frame: 2 days
Completion Costs: 3-5% of transaction price (Notary’s fees)
Points to Note:
After getting the legal documentation from the parties, the notary issues the preliminary deed. Notary’s fees are usually calculated based on the market value of the property according to regulations setting minimum tariffs. For properties with a value below HNL 25,000, the rate cannot be below 5% of the value, while for properties with a higher value, the fee cannot be below 3% of the property value. Fees are negotiated between the notary and parties.

Step 4: Payment at the bank of taxes and fees

Completion Time Frame: 1 day
Completion Costs: 1.5% of property price (Transfer Tax)
Points to Note:
The transfer tax (1.5% of value of property, for urban property with improvements) must be paid at a bank. The taxes are calculated based on either the official value of the property (determined by the Cadastre for tax purposes) or the insured value, whichever is higher.
With the introduction of the Property Law in 2004, the transfer tax was cut from 3 to 1.5%, the registration rights and the stamps have been eliminated.

Step 5: Notary issues the final copy of the deed

Completion Time Frame: 1 day
Completion Costs: no additional cost
Points to Note:
After receiving the receipts of the payment of the taxes and fees in the previous step, the notary issues the final copy of the deed (“testimonio”), which should be presented later at the Property Office.

Step 6: Registration at the Property Office (Instituto de la Propiedad)

Completion Time Frame: 14 days
Completion Costs: No cost
Points to Note:
The new deed must be registered in the Property Office by the notary.

Step 7: Register the change of ownership in the Cadastre office

Completion Time Frame: 2 days
Completion Costs: HNL 250
Points to Note:
The change of ownership must be registered in the Cadastre office (“Dirección General de Catastro y Geografía”) by the notary. The deed duly registered in Step 6 must be presented at the cadastre.